What are Payroll Taxes?

Updated: Aug 7

A business with one or more employees will need to withhold payroll taxes from an employee's paycheck and send it to the government. Payroll taxes are employment taxes that employers and employees pay a portion of, but it's the employer's responsibility to collect payroll taxes. There are federal payroll taxes, state payroll taxes (depending on the state), and in some areas, local payroll taxes.


The most common payroll taxes include:

  • Social Security Tax

  • Medicare Tax

  • Unemployment Tax

  • State Payroll Taxes (depending on the state)

Additional Resouces:

1. IRS form associated with federal tax withholding: Form W-4

2. Recommend online software to help you run your payroll: Gusto



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